Louvre Hotels Group sold to Chinese investors
Starwood Capital sells Golden Tulip operator to Jin Jiang International Holdings
Starwood Capital Group has signed an agreement for the sale of Louvre Hotels Group, which operates brands including Golden Tulip, Tulip Inn and Royal Tulip, to Jin Jiang International Holdings Co.
The Chinese company already owns and operates more than 1700 hotels in 11 countries, and the completion of this acquisition will add more than 1100 hotels, with more than 90,000 rooms, in 40 countries to its network.
Paris-based Louvre Hotels Group and Jin Jiang International Holdings had established a commercial partnership in November 2011, which introduced a co-branding program to selected hotels in major cities of China and France.
The transaction is expected to take place during the first quarter of 2015 and the amount being paid is yet to be disclosed.
“This agreement, as a combination of Louvre Hotels Group with Jin Jiang International Holdings, would ensure the continued growth and expansion of all brands of Louvre Hotels Group while bringing to a close of the very successful relationship between the group and Starwood Capital,” said Starwood Capital Group CEO Barry Sternlicht.
“Together with Jin Jiang, we expect the brands will be able to strengthen their capacity and capture the strong growth potential that clearly exists in China and, more broadly, in Asia.”
Other brands within the Louvre Hotels portfolio include Première Classe, Campanile, Kyriad, and the company claims to be the 14th largest hotel group worldwide by number of hotels.
Jin Jiang International Holdings Co chairman Yu Minliang added: “As a strategic investor, we are pleased, on the basis of close partnership over the past years, to reach consensus with Starwood Capital Group.
“There is strong complementary synergy between Louvre Hotel and Jin Jiang in brand portfolio, geographic footprint and guest base. We are looking forward to working with the management, employees and other stakeholders of Louvre Hotel Group so as to create larger space for both parties to grow globally.”